White: 'Pressure' from Dynamo as venue cost rises

White cites 'pressure' from Dynamo as venue cost rises

MATT STILES and BERNARDO FALLAS, Copyright 2008 Houston Chronicle

Published 5:30 am, Thursday, April 17, 2008

Private negotiations between city leaders and the Dynamo soccer franchise about a partnership to build a new stadium downtown spilled into the public Wednesday, when Mayor Bill White complained the team had tried to "pressure" him.

During a subsequent news conference to publicly assuage the mayor's concerns, team officials said the price tag on a new stadium had climbed to $105 million, up from the $80 million to $90 million previously estimated.

The rising cost estimate could make it even harder for both sides to come to an agreement on how much the city will contribute to get the stadium built.

The dueling statements on the stadium negotiations began during the mayor's regular news conference following the City Council meeting.

In response to a generic question about the state of the negotiations, White told reporters that one of the team's owners recently showed him a letter from Major League Soccer urging a quick resolution to the negotiations. The letter, written by Commissioner Don Garber, hints at the possibility of moving the team from Houston if a stadium deal is not reached with the city.

"It is inconceivable that MLS will allow the team to continue playing as a secondary tenant in a college football facility, particularly after the league moved the team due to the challenges at San Jose State," Garber wrote. "While another relocation would be equally traumatic, we both must consider our options to ensure that the team has a path to economic success."

The Dynamo came to Houston in 2005 after the team was unable to reach a public-private partnership with the city of San Jose, Calif., for a new stadium.

White was blunt in his response to reporters.

"I've gotten a little bit of a reputation, probably deserved, that I don't respond well to threats," he said. "I smiled."

Team officials later held a news conference to explain that they never intended to pressure the mayor.

But Oliver Luck, president and general manager, also reiterated the team's contention that a significant city investment in the new stadium is necessary to make the franchise successful.

"We have made our position very clear to the mayor that we are looking for some public support for that building, and we will do the right thing, which is to continue to negotiate with the city to try to identify any potential revenue streams that may eventually bridge the gap we're now facing," Luck said.

Rising cost at issue

In addition to responding to the negotiation issue, the team also announced that the estimated cost of building the 20,000 plus-seat stadium had increased from $80 to $90 million to $105 million.

Both sides have in recent weeks reported making progress in the negotiations over the stadium at a location just east of downtown.

The City Council last month voted to spend $15.5 million to purchase five blocks, and voted to obtain a sixth block by swapping some city-owned land. The area is bounded on the north and south by Texas and Walker, and on the east and west by Dowling and Hutchins.

'Lack of progress'

Dynamo officials said they were only trying to illustrate the pressure they felt from the league.

"The point was not to put any pressure on the mayor or threaten the mayor by any means," Luck said, "but to really show the mayor the ownership of the league is very concerned about the progress or lack there of that we're making here in Houston in terms of a long-term home."

Garber cited the "lack of progress" in his letter:

"Even in the fourth-largest market in the country with a young and dynamic demographic that embraces soccer, the Houston team will continue to lose money without a public-private partnership on a new soccer stadium — a fact that presents significant issues for the league."

Garber was not available for comment Wednesday, a league spokesman said.

The letter notes that league franchises across the country and Canada have entered public-private partnerships for stadiums.

Those deals involved direct public financing of the projects, while others relied on municipal land or low-interest loans, according to the letter.